BMW 2013 Annual Report Download - page 55

55 COMBINED MANAGEMENT REPORT
period, leased products accounted for 18.7 % of total as-
sets, similar to their level one year earlier (18.6 %). Ad-
justed for exchange rate factors, they went up by 8.1 %.
Non-current receivables from sales financing accounted
for 23.6 % (2012: 24.5 %) of total assets, current receiva-
bles from sales financing for 15.5 % (2012: 15.6 %). Total
receivables from sales financing relate to retail customer
and dealer financing (€ 40,841 million) and finance
leases
(€ 13,276 million). Adjusted for exchange rate factors,
non-current receivables from sales financing went up by
7.6 %, while current receivables from sales financing
rose by 10.4 %. This includes the negative impact of the
depreciation in value of a number of major currencies
against the euro.
Within current assets, increases were registered for other
assets (€ 601 million) and financial assets (€ 947 million).
Favourable developments with currency derivatives
as well as the purchase of commercial paper and invest-
ment certificates caused financial assets to rise. Other
assets relate to receivables from other companies in
which an investment is held, advance payments to sup-
pliers and collateral receivables.
Compared to the end of the previous year, inventories
decreased by € 140 million (1.4 %) to € 9,585 million and
accounted for 6.9 % (2012: 7.4 %) of total assets. The
decrease relates primarily to finished goods. Adjusted
for exchange rate factors, inventories increased by 1.7 %.
Trade receivables were € 94 million lower than at the end
of the previous year and accounted for 1.8 % of total
assets (2012: 1.9 %). Adjusted for exchange rate factors,
trade receivables decreased by 1.2 %.
Cash and cash equivalents went down by € 706 million to
€ 7,664 million.
On the equity and liabilities side of the balance sheet, in-
creases were recorded for equity (16.5 %), trade payables
(16.2 %), non-current financial liabilities (0.9 %) and
current financial liabilities (1.5 %). By contrast, pension
provisions decreased by 39.6 %.
Group equity rose by € 5,037 million to € 35,643 million,
mainly due to the profit attributable to shareholders of
BMW AG totalling € 5,314 million. Currency translation
differences reduced equity by € 635 million. Deferred
taxes on items recognised directly in equity had the
effect of reducing equity by € 779 million. Group equity
increased on account of remeasurements of the net
defined benefit liability for pension plans (€ 1,308 mil-
lion), primarily as a
result of the higher discount rates
used in Germany and the USA. Fair value measurement
of derivative financial instruments (€ 1,357 million)
and
marketable securities (€ 8 million) had a positive im-
pact on equity. Income and expenses relating to equity
accounted investments and recognised directly in equity
(before tax) reduced equity by € 7 million. The divi-
dend
payment decreased equity by € 1,640 million. Mi-
nority interests increased by € 81 million. Other changes
amounted to € 13 million.
A portion of the Authorised Capital created at the
Annual General Meeting held on 14 May 2009 in con-
junction with the employee share scheme was used
during the financial year under report to issue shares
of
preferred stock to employees. An amount of € 17 mil-
lion was transferred to capital reserves in conjunction
with this share capital increase.
The equity ratio of the BMW Group improved overall
by 2.6 percentage points to 25.8 %. The equity ratio of
the Automotive segment was 43.1 % (2012: 41.0 %) and
that of the Financial Services segment was 9.1 % (2012:
8.6 %).
Pension provisions decreased from € 3,813 million to
€ 2,303 million at the two respective year ends, mainly
as a result of the higher discount factors used in Ger-
many and the USA.
Trade payables went up from € 6,433 million to € 7,475 mil-
lion,
mainly reflecting higher production volumes and
increased capital expenditure levels. Trade payables ac-
counted for 5.4 % of the balance sheet total at the end
of the reporting period (2012: 4.9 %). Adjusted for ex-
change
rate factors, they increased by 17.9 %.
Current and non-current financial liabilities increased
from € 69,507 to € 70,304 million over the twelve-month
period. Within financial liabilities, commercial paper
went up by 37.5 %, ABS transactions by 7.6 % and bonds
by 1.7 %. By contrast, liabilities to banks went down
by 9.4 % and deposit liabilities by 4.3 %. Adjusted for